Beijing, Oct 29 (KNN) In an effort to enhance small and medium enterprises (SMEs), the Chinese government has simplified its corporate registration system to ease market access and at the same time encourage social investment.
The government’s decision will play a key role in providing opportunities for business start-ups in the country.
As per the new policy, the government will scrap minimum registered capital requirements for limited liability companies, one-person limited liability companies, as well as joint-stock companies with limited liability, said a Xinhua report.
Commending the move, “It is an encouragement for the private sector, as private investors will face much fewer barriers in establishing businesses,” said a researcher with the Development Research Centre of the State Council, Zhang.
In his opinion it would help improve the investment environment and stimulate social investment.
According to National Bureau of Statistics data, SMEs provide more than 80 per cent of jobs in Chinese cities.